---
title: "Payment Exception Service - Preliminary Market Engagement Notice"
ocid: "ocds-h6vhtk-04f71a"
canonical_url: "https://d3tenders.com/contract/?ocid=ocds-h6vhtk-04f71a"
markdown_url: "https://d3tenders.com/contract/ocds-h6vhtk-04f71a.md"
json_url: "https://d3tenders.com/contract/ocds-h6vhtk-04f71a.json"
source: "Find A Tender Service"
current_stage: "Tender"
buyer: "DEPARTMENT FOR WORK AND PENSIONS"
published: "2025-06-20"
---

# Payment Exception Service - Preliminary Market Engagement Notice

Buyer: DEPARTMENT FOR WORK AND PENSIONS  
Current stage: Tender  
OCID: ocds-h6vhtk-04f71a

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## Summary

The public procurement process for the "Payment Exception Service" was initially undertaken by the Department for Work and Pensions (DWP) located in Blackpool, United Kingdom. This procurement aimed to engage suppliers to operate a system enabling benefit and pensions recipients without bank accounts to receive their entitlements. Classified under Financial and Insurance Services, the process has reached several stages, with a preliminary market engagement notice recently withdrawn on 20 June 2025 as the project transitioned from a multi-lot to a single service format. Key dates include an initial planning stage between 10 April and 6 May 2025, and an anticipated tender submission in early to mid-September 2025. The process follows the Competitive Flexible procedure under the Procurement Act 2023, with the tender status shifted to 'withdrawn' to reflect the strategic change.

This procurement is a significant opportunity for businesses specialising in financial innovations and services tailored for vulnerable communities. Organisations with expertise in developing inclusive financial solutions, particularly SMEs and VCSEs, could benefit from participating. The procurement lays strong emphasis on innovative and secure services that support financial inclusion and minimise reliance on the Payment Exception Service by facilitating the transition to standard banking products. Businesses that can provide comprehensive cash disbursement services and support DWP's policy goals while adhering to regulatory compliance and technological innovation will find promising prospects in this tender reformation.

## Notice

DWP is procuring a Supplier to create and operate a system (the "Payment Exception Service") which will allow benefit and pensions recipients (which DWP refers to as "Customers") without bank accounts to receive payment of entitlement through an alternate method of payment. The service is required to fulfil the Secretary of State obligation to pay benefit and pensions payments on time, on the due date, to the correct customer. Customers will need to be able to access their payments in cash at a wide range of geographical locations. Suppliers will need to ensure comprehensive coverage, which DWP will further define in the Tender Notice. The geographical scope of the Payment Exception Service will be for Great Britain and Northern Ireland. Benefit payments are usually paid weekly, monthly or 4 weekly. This will be a "Payment Service" as defined by the Payment Services Regulations 2017. Recent market engagement and 1-2-1 sessions identified new technology and innovation in the market, this has allowed DWP to reflect on their business requirements. DWP has carefully considered whether new technologies will meet the needs of our most vulnerable customers. At the present time DWP considers that a simple and robust delivery model is the best way to ensure that particularly vulnerable customers can access their payments. To meet the Governments mission-led focus, DWP's ambition is to ensure that only customers that should be on the service are relying on PES over the coming years, to help support them to become financially included. Consequently, it is intended that DWP will include within the specification Lot 1 business requirements which will have as their aim the lowering the number of people depending on the PES. For this reason, DWP will no longer be pursuing the procurement of Lot 2, as described in previous PME notices. DWP estimate the date for suppliers to submit Tenders in this Competitive Flexible Procurement will be early to mid September 2025 (Tender Submission Date.) It is not envisaged that there will be a separate "Request to Participate" stage. Conditions of Participation will be set out in the Tender Notice and bids will be assessed based on legal, financial capacity and technical ability. DWP strongly advise that potential suppliers review the Conditions of Participation and the fundamental requirements carefully before compiling a full bid as failure to meet these requirements may result in your bid being excluded. Tender Documents may be obtained via DWP e-procurement system. Further details will be provided at Tender stage. The Preliminary Market Engagement Notice linked to this procurement stated that Market Engagement would include Conditions of Participation. This was an error. Any Conditions of Participation that DWP require will be added to the Tender Notice (currently scheduled for 31 July 2025)

### Lot Information

Cash Disbursement Service

Service to be accessible nationwide to deliver a cash out disbursement

Renewal: Allow the safe transition across to a replacement service and provides payment continuity to customers.

Supporting Financial Inclusion

Support customers to move across to standard banking products

Renewal: Allow the safe transition across to a replacement service and provides payment continuity to customers.

### Planning Information

Market Engagement events occurred between 10 April and 06 May 2025

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Find A Tender Service |
| Latest notice | https://www.find-tender.service.gov.uk/Notice/034103-2025 |
| Notice type | UK12 - Procurement Termination Notice |
| Procurement type | Standard |
| Procurement category | Services |
| Procurement method | Open |
| Procurement method details | Competitive flexible procedure |
| Tender suitability | SME, VCSE |
| Awardee scale | Not specified |
| All stages | Planning, Tender |

## Dates

| Field | Value |
| --- | --- |
| Publication date | 20 Jun 2025 |
| Submission deadline | 21 Aug 2025 |
| Future notice date | 31 Jul 2025 |
| Award date | Not specified |
| Contract period | 26 Jan 2026 - 25 Jan 2031 |
| Recurrence | Not specified |

## Values

| Field | Value |
| --- | --- |
| Tender value | £15,945,022 |
| Lots value | £25,000,000 |
| Awards value | Not specified |
| Contracts value | Not specified |

## Status

| Field | Value |
| --- | --- |
| Tender status | Withdrawn |
| Lots status | Withdrawn |
| Awards status | Cancelled |
| Contracts status | Not specified |

## Buyer

| Field | Value |
| --- | --- |
| Main buyer | DEPARTMENT FOR WORK AND PENSIONS |
| Additional buyers | Missing |
| Locality | BLACKPOOL |
| Post town | Blackpool |
| Postcode | FY4 5ES |
| Country | England |
| ITL 1 | TLD North West (England) |
| ITL 2 | TLD4 Lancashire |
| ITL 3 | TLD42 Blackpool |
| Local authority | Blackpool |
| Electoral ward | Stanley |
| Westminster constituency | Blackpool South |
| Delivery location | Not specified |

## CPV Codes

### Divisions

- 66 - Financial and insurance services

### Codes

- 66000000 - Financial and insurance services

## Release History

- 20 Jun 2025 at 13:48 - TenderCancellation - UK12 - Procurement Termination Notice - https://www.find-tender.service.gov.uk/Notice/034103-2025
- 19 Jun 2025 at 14:47 - Planning - UK2 - Preliminary Market Engagement Notice - https://www.find-tender.service.gov.uk/Notice/033798-2025
- 27 Mar 2025 at 15:36 - PlanningUpdate - UK2 - Preliminary Market Engagement Notice - https://www.find-tender.service.gov.uk/Notice/011609-2025
- 25 Mar 2025 at 17:10 - Planning - UK2 - Preliminary Market Engagement Notice - https://www.find-tender.service.gov.uk/Notice/011229-2025
- 21 Mar 2025 at 10:00 - Planning - UK3 - Planned Procurement Notice - https://www.find-tender.service.gov.uk/Notice/010576-2025

## Documents

- https://www.find-tender.service.gov.uk/Notice/034103-2025
  20th June 2025 - Procurement termination notice on Find a Tender
- https://www.find-tender.service.gov.uk/Notice/033798-2025
  19th June 2025 - Preliminary market engagement notice on Find a Tender
- https://www.find-tender.service.gov.uk/Notice/011609-2025
  27th March 2025 - Preliminary market engagement notice on Find a Tender
- https://www.find-tender.service.gov.uk/Notice/011229-2025
  25th March 2025 - Preliminary market engagement notice on Find a Tender
- https://www.find-tender.service.gov.uk/Notice/010576-2025
  21st March 2025 - Planned procurement notice on Find a Tender

## Notice URLs

- http://www.gov.uk
- https://www.legislation.gov.uk/ukpga/2023/54/contents

## Provenance

This Markdown file is an alternate public rendering of the D3 Tenders contract record. The canonical page is https://d3tenders.com/contract/?ocid=ocds-h6vhtk-04f71a. The underlying structured data is available as OCDS JSON at https://d3tenders.com/contract/ocds-h6vhtk-04f71a.json.